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June 15 (Bloomberg) -- Canadian Finance Minister Jim Flaherty said his country is “prepared” to accept additional capital requirements for so-called systemically important financial institutions.
Flaherty, speaking to reporters today in New York, said he doesn’t think additional buffers currently being proposed by regulators would bring capital requirements above levels that already exist in Canada.
“Some countries feel that it is necessary to impose some additional capital requirements on systemically important financial institutions and that’s a situation that we are prepared to accept, depending on the level that is being proposed,” Flaherty said, adding he is a “believer” of effective supervision of banks regardless of their size.
Global regulators are discussing forcing so-called global systemically important financial institutions to hold additional capital buffers, in proposals that will be decided on by leaders of Group of 20 nations this year.
Flaherty said a focus on the largest banks may be short- sighted.
“I realize that we are not capable in an imperfect world of predicting exactly where the next crisis will come from and we ought not to assume that it will only be from a large systemically important financial institution,” he said.
Flaherty also said he is “hopeful” that the U.S. economy will be able to maintain a “modest” rate of expansion.
--Editors: David Scanlan
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